The EAC Strike Is Paused. But Cyprus's Electricity Problem Is Just Getting Started.

The Strike Was Paused. The Problem Was Not.

On July 23, 2026, EAC trade unions suspended their planned strike action until September. For most people in Cyprus, it was a quiet relief; the threat of rolling power cuts passed, at least for now.

But the suspension didn't resolve the conditions that made a strike possible in the first place. The unions said as much themselves: after meeting with government officials, they noted a lack of concrete solutions to the underlying challenges facing Cyprus's electricity system.

Understanding what those challenges are, and what they mean for anyone relying on the electricity grid, is worth taking seriously.

A Structural Gap in Cyprus's Power Supply

Cyprus is approaching a significant structural problem in its electricity generation capacity.

Nine conventional generation units are scheduled for permanent decommissioning by 2029: six at the Dhekelia power station and three at Vasiliko. Together, these units represent approximately 750 MW of generating capacity. To put that figure in context, Cyprus's peak electricity demand regularly exceeds 1,000 MW during summer months.

The replacement plan has two major weaknesses. First, a newly constructed gas-fired unit at Vasiliko sits idle; construction is complete, but the fuel supply infrastructure has not yet been delivered. Second, two new gas turbines planned for Dhekelia will contribute only 80 MW of additional capacity, and are not expected to be operational until 2028. That leaves a meaningful gap precisely when the old units must go offline.

EAC's technical director briefed Members of Parliament that some units currently in operation are running up to 20 years beyond their designed lifespan. Units at Dhekelia are 45 years old. Their intended operational life was approximately 25 years.

The European Network of Transmission System Operators (ENTSO-E) has flagged Cyprus as one of the countries facing the highest supply adequacy risk in Europe. Internal studies already show that Cyprus is exceeding acceptable reserve margins during peak demand hours in both summer and winter 2026. This is not a future risk. It is a present one.

The Solar Paradox: Too Much and Not Enough

What makes Cyprus's energy situation particularly striking is the paradox running alongside the conventional supply problem.

In May 2026, renewable energy sources, predominantly solar, accounted for 36.88% of total electricity generation in Cyprus. That is a record figure, and a genuine achievement. Yet in the first months of 2025, Cyprus curtailed over 145 GWh of solar energy; clean power that was generated but could not be absorbed by the grid, and was therefore simply wasted.

The reason is the same in both cases: the grid lacks sufficient storage infrastructure to balance supply and demand in real time. When the sun is strong and residential and commercial solar systems are all generating simultaneously, there is more electricity than the network can use. When demand peaks, in the evening, in summer heat, in winter cold, conventional generation must fill the gap.

The answer to both problems is energy storage. And progress is finally being made.

Battery Storage: Progress and What's Available

In June 2026, the first contracts for large-scale electricity battery storage in Cyprus were signed, covering 120 MW of centralised capacity managed by the transmission system operator. A further 570 MWh of storage projects have received preliminary grid connection approval across eight projects.

The government's target is 600 MW of storage capacity by 2030; a significant undertaking for an island of Cyprus's size, but one that reflects how seriously the supply imbalance is being taken.

For homeowners and businesses, there is also a more immediate opportunity. The Ministry of Energy, Commerce and Industry has EU-backed subsidies available for energy storage systems paired with solar installations. Key terms:

• Up to €75,000 per MWh for self-consumption storage systems
• Coverage of up to 70% of eligible costs
• From January 1, 2026, new photovoltaic installations must include a storage component to qualify for state grant schemes

If you are considering solar for the first time, or upgrading an existing system, these subsidy windows are worth acting on while they remain open.

What Net Billing Means for Your System

Since January 1, 2026, all new photovoltaic installations in Cyprus operate under a Net Billing scheme rather than the previous Net Metering arrangement. This is an important distinction.

Under Net Metering, every unit of electricity you exported to the grid was credited to your bill at the full retail rate; a one-to-one exchange. Under Net Billing, surplus energy you export is purchased at a lower wholesale rate. The financial case for maximising self-consumption has never been stronger.

Combined with grid curtailments, where the EAC disconnects solar systems during periods of excess generation, the message is consistent: batteries are no longer a nice-to-have. For new installations, they are increasingly the foundation of a system that actually performs.

A Practical Question

If your electricity supply were disrupted for 12 to 24 hours, during a summer heatwave, or in the middle of a working week, what would the cost be to your home or business?

That question is no longer hypothetical. Cyprus's grid is under more pressure than at any point in recent memory, and the structural challenges ahead are well-documented. The good news is that the tools to reduce your exposure exist, government support is available, and the economics of solar with storage in Cyprus have never been more favourable.